(Image: Martin Schulz re-elected President of the European Parliament. MEPs re-elected Martin Schulz as President of the European Parliament on Tuesday morning for another two and a half year term. The 58-year old German MEP will lead Parliament until January 2017)
Here is the EU’s 2016 ‘Work Plan’ as effectively adopted by EU Parliamentarians; as prepared the Economic and Monetary Affairs Committee of the EU Parliament.
- Country-by-country reporting on profit, tax and subsidies by June 2016.
- A “Fair Tax Payer” label.
- A Common Tax Base (CCTB) as a first step, which later on should be consolidated as well (CCCTB).
- A Common European Tax Identification Number.
- A proposal for the legal protection of whistle-blowers.
- The adoption of measures to improve cross-border taxation dispute resolution mechanisms.
- A proposal for a new mechanism to require member states to inform each other if they intend to introduce a new allowance, relief, exception, incentive, etc. that may affect the tax base of others.
- Preparation of an estimate of the corporate tax gap (corporate taxes owed minus what has been paid).
- Strengthen and improve the transparency of the Council Code of Conduct Working Group on Business Taxation.
- Provision of guidelines regarding ‘patent boxes’ so as to ensure they are not harmful.
- Define common definitions for “permanent establishment” and “economic substance” so as to ensure that profits are taxed where value is generated.
- Come up with an EU definition of “tax haven” and counter-measures for those who use them, and
- Improve the transfer pricing framework in the EU.
According to the EU:
“This report shows the determination of both the European Parliament and the people of Europe to see real legislative change to prevent companies jumping across borders to reduce their tax bills to almost zero. The ‘Luxleaks‘ scandal showed how much these corporations have been getting away with, dodging tax that could have been used to build schools, hospitals or pay down national debt.”
The Commission will have three months to respond to the recommendations, either with a legislative proposal or with an explanation for not doing so.